Coface Chief Economist: Corporate Pricing Power Constrained Amid Middle East Tensions (eco.sapo.pt)

• Eurozone inflation accelerates to 2.5% in March.
• Corporate ability to raise prices is significantly lower than in 2022.
• ECB interest rate hikes anticipated in June if geopolitical instability persists.

"Rising energy prices triggered by Middle East conflict have pushed Eurozone inflation to 2.5% in March. While the Coface chief economist notes that firms lack the easy pricing power they leveraged in 2022, persistent conflict pressures remain. Consequently, the European Central Bank (ECB) is likely to hike interest rates in June if supply chain disruptions and energy costs do not stabilize."